Countries With The Best Tax Law For Freelancers

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Countries With The Best Tax Law For Freelancers

How would you like to wake up every morning and let your eyes feast on a view that doesn’t include glass and concrete buildings? Maybe you want to admire the ocean or you’re more into a mountain view, with beautiful valleys and snowy mountains somewhere in the background.

This is one of the perks of being a freelancer in today’s day and age. Overall, if you’re OK with a slightly nomadic lifestyle and have a zest for traveling and discovering new cultures, life as a freelancer can be a true godsend!

But there’s another benefit to being self-employed – you have the freedom to relocate your home in search of a friendlier nation when it comes to tax. After all, who wants to spend all their hard-earned money on tax?

If you look for countries with some of the best tax laws for freelancers you’ll find that Hong Kong, Chile, and Mauritius are the most acclaimed. However, there are other countries out there that are happy to welcome expats and create space for them.

How To Find Your Home Abroad

Of course, before taking this life-altering decision, it’s important to do your research and carefully weigh all the pros and cons. For instance, even if your dream nation has beautiful scenery and amazing cycling paths, it doesn’t help if the internet speed is slow and the bureaucracy is rampant.

After all, whether you’re a writer, a programmer, or a designer, you first need a comfortable place to work, a laptop (or another smart device), and a reliable internet connection. But you’ll also need a bank account, a way to relocate the business, and laws that are friendly with self-employed people.

The Best Countries to Consider as a Freelancer

To give you an idea of just how many places you can consider, here are a few countries and areas that are known for relatively low tax income and a low cost of living:

Estonia

If you like colder weather (especially during winter) and beautiful cities (Tallinn, the capital, is mesmerizing) the most northern Baltic nation may be a great fit for you. The country blossomed after joining the EU in 2004, with authorities focusing on high-quality learning and technological development. Plus, freelancers and expats are welcome!

The income tax is 20% (quite low when compared to Finland’s 51.6%) and there are plenty of opportunities especially in the field of IT. You may have some difficulties with the language since it’s quite unique in Europe, but almost every Estonian speaks a second language.

The most common ones are English and Russian, but you’ll also find Finnish, Swedish, or German. So you don’t have to worry about integrating with the locals that much.

Eastern Europe

Bulgaria and Romania are not always seen with good eyes by expats or even travelers. That’s because both countries are still in a process of change that doesn’t seem to lead anywhere anytime soon. Still, this is mostly an issue for the locals and not freelancers or self-employed expats who have an external source of income.

Both countries have a low income tax (10% for both), the cost of living is relatively low, and there are some opportunities directed at self-employed people.

Plus, English is one of the most common foreign languages spoken in both countries. You’ll also find some Italian, Spanish, and even expats from the Middle East.

Czech Republic

A bit towards central Europe, you’ll find the Czech Republic, which is another country in the process of development and recovery from the misfortunes of the past.

On the flip side, Czech Republic has cities like Prague, Brno, or Cesky Krumlov (a UNESCO World Heritage Site) that will keep any history lover busy for a while.

Also, the cost of living is low and the income tax is at 15%, which is a lot lower than in the many European nations moving further to the west. However, English is not that common, especially if you move away from the capital city.

Wrap Up

The countries mentioned above all have a strong IT sector and good internet speeds. Plus, the internet is rather low-cost and you can find tech specialists rather easily.

Still, make sure you pay attention to your internet security like you would in any other country. Just because the speed is good, doesn’t mean you should let your guard down!

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.